The new initiative from Domino’s Pizza that lets them deliver food to unconventional locations such as beaches or parks gets rid of the need for industry innovations like ovens on wheels, Domino’s new chief executive officer Richard Allison said.
The initiative, which is tagged as Domino’s Hospots, enables customers to order food to places that sport no traditional addresses. Domino’s franchisees have now isolated 200,000 total hotspots within their communities since the project was unveiled during the earlier part of this year.
“Through this fortressing process, we’re bringing these delivery areas tighter and closer together,” said Allison in an interview. “What that’s doing is getting us closer to the customer, so as soon as that pizza coms out of the oven, we want it in a car, with a driver and on its way to the customer.”
Domino’s has reported a slightly missed second quarter earnings reports on Thursday. However, it is planning a more concerted kickoff of the hotspots program in the third quarter. Allison said that the response has already been overwhelming.
“Our franchisees have really embraced this… It’s been a lot of fun,” the CEO said. “And customers have really embraced this. We’ve gotten a lot of excitement around it.”
In the second quarter of this year, Domino’s Pizza, which has been known for being focused on growth, has seen its same-store sales grow 6.9 percent. Same-store sales is a key metric among restaurant operators.
Even though Domino’s finished the trading session 2.44 percent lower, the stock has increased 50 percent since the beginning of 2018, with Domno’s taking market share from competitors Papa John’s and Pizza Hut.
On the other hand, Allison, who also serves as the president of the pizza chain, didn’t give much comment in regards to the controversy surrounding Papa John’s, which is a key competitor for Domino’s.
“There’s some noise going on in the industry, but we’re really focused on our customers and our franchisees,” said Allison.
“And I think if we can continue to deliver great value, great food, to our customers and cancontinue to support great cash-on-cash returns with our franchisees, I think we can continue to gain market share and we’re fairly agnostic as to where that comes from,” said the CEO.
Thursday was the day when Allison’s first earnings reports since taking the helm as CEO of the international pizza chain. He came after Patrick Doyle, who headed a turnaround at Domino’s and was the CEO for seven years.